Advanced - Capex Lines & Capital Leases
Some quick questions as I'm having some trouble modeling these:
1) Has anyone had any experience with Capex Lines? If so, what are the details on how they work and how would you model it? Never been involved on a deal that had one so I'm in the clouds about it...
2) I usually model the capital leases I amortize it with an PMT function in order to extract a uniform payment then just calculate the interest portion seperately (the % payment * outstanding balance) for the purpose for flowing it to the P&L... Anyone else have a different way of modelling it?
3) Converting the asset to a capital lease - purely swap the pp&e portion to a capital lease obligation on the liabilities side, increase cash by capitalized amount and then amortize and pay interest it over its life through the debt sched. Agree or disgaree?
Thanks.
Eaque repudiandae magni dolorum cum facilis repudiandae rerum. Nam reiciendis qui harum officia eius. Error impedit velit autem voluptas animi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...